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No political gain from GST hike: Finance Minister

Malika Shahid
02 January 2023, MVT 12:54
[File] Finance Minister Ibrahim Ameer
Malika Shahid
02 January 2023, MVT 12:54

Finance Minister Ibrahim Ameer defended the Goods and Service Tax (GST) hike, saying economic decisions made by President Ibrahim Mohamed Solih are not for any political gain but to overcome the economic struggle the Maldives has fallen into with the Covid pandemic.

With the GST hike to 8 percent and Tourism Goods and Services Tax (TGST) to 16 per cent from January 1, 2023, the state was criticized for causing an inconvenience to the people.

Former President and President of the main party in the ruling coalition, Maldives Democratic Party (MDP), Mohamed Nasheed also spoke out against the GST hike. Speaking in connection with the upcoming MDP primary, he said that if elected to power, he will cut taxes again.

Responding to criticism, Minister Ameer said there was no political gain in the latest economic decision to increase GST. The President is taking the necessary measures to overcome the economic crisis, he said.

Ameer said neighboring countries have seen the consequences of "compromising" economic policies in the pursuit of political power.

The Minister said the International Monetary Fund (IMF) also supports that the rapid growth of the Maldivian economy is a result of the states economic policies to overcome the pandemic.

"The economy has returned to pre-pandemic levels. Our target of 1.6 million tourists by 2022 has already been achieved. This year, 1.8 million tourists are expected to visit Maldives," he said.

Nasheed also criticized the financial management of the government, expressing concern over the state taking additional loans to pay off its debt. He has accused President Solih of not looking into such financial matters.

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